How PNB Personal Loan Interest Rates is Determined?

You can borrow a personal loan from Punjab National Bank (PNB) one of the top public sector banks in India. The loan amount can be used for marriage expenses, educational needs, medical emergency, renovation of house, etc. If you are salaried and have a regular income then you are eligible for the PNB personal loan. But what might decide the PNB personal loan interest rates? If you don’t know the factors that affect your interest rate on loans then read the article below.

Factors affecting the PNB personal loan interest rates

Punjab National Bank provides you a personal loan at an attractive interest rate of 8.80% to 11.65% per annum which is based on the repo linked lending rate of the bank. PNB personal loan interest rates are fixed and don’t change during the tenure. Check out the factors below that could help you get a low-interest rate on your PNB personal loan.

Income:- You can avail the PNB personal loan if you have a minimum monthly salary of INR 10,000. It is vital to meet the loan requirements for the approval. Otherwise your loan request would be rejected. But what you must take care of is the greed. If you are eligible for a high loan amount, then you shouldn’t borrow it because that might turn into a high EMI, more interest payment and unstable budget. Try to avoid greed when you are borrowing, because your main focus should be on your financial needs.

CIBIL Score:- Check your CIBIL score before you apply for the PNB personal loan. Why? Because it may help you get a better PNB personal loan interest rate. How? As the individual with a good repayment history is more likely to get a loan compared to the other, so the bank will negotiate with the interest rate in that case. An ideal CIBIL score to get a low personal loan interest rate should be 750 or above.

Experience:- Your work experience is taken into account when you are a salaried individual. Because Punjab National Bank provides personal loans to permanent employees only who have a minimum work experience of 2 years. And 1-year of experience with the current organization or employer. It has the same effect on your PNB personal loan interest rates as well. Because when you have more experience you are likely to have a high income and job satisfaction is met which helps you get the low-interest rate.

Use PNB personal loan EMI calculator before you apply!

It is always considered good to estimate the future payment, and when you have a tool such as PNB personal loan EMI calculator, then it will be easy for you to select the tenure. You can know at what tenure the interest outgo is low and the EMI fit in your budget. See the example below to know how PNB personal loan EMI calculator helps the customers.

Suppose you have borrowed a PNB personal loan of INR 15 Lakh for medical assistance. And the bank approves the personal loan at an interest rate of 11.80% per annum. Then what should be a suitable tenure for it. See the table below and know what outcomes you will get when you use the PNB personal loan EMI calculator. 

Table Showing EMI, Interest Outgo, and Total Repayment Amount

Loan Amount Interest Rate  Tenure  Monthly Installment  Payable Interest  Total Amount 
15,00,000 11.80% 1 1,33,133 97,595 15,97,595
15,00,000 11.80% 2 70,470 1,91,285 16,91,285
15,00,000 11.80% 3 49,678 2,88,419 17,88,419
15,00,000 11.80% 4 39,354 3,88,974 18,88,974
15,00,000 11.80% 5 33,215 4,92,916 19,92,916

EMI, Total Interest Outgo, Total Repayment (Interest + Principal)

Loan Tenure Interest  Principal  Balance 
1 1,64,614 2,33,968 12,66,031
2 1,35,463 2,63,120 10,02,910
3 1,02,679 2,95,904 7,07,006
4 65,811 3,32,772 3,74,234
5 24,349 3,74,557 0